New Delhi, June 26 -- Dearness allowance (DA) is a component of the basic salary of central government employees, public sector staff, defence personnel, bank employees and dearness relief (DR) pensioners that is periodically adjusted for inflation.

Revised twice annually by the All-India Consumer Price Index (AICPI), with new announcements usually made in March and October and rollouts scheduled in January and July, it is aimed at mitigating the rising cost of living and has an impact on employees' salaries.

It was last hiked by 2% in April this year, effectively taking the component to 60% of the basic pay for central government employees and pensioners. DA and DR are meant to mitigate higher inflation.

About 50 lakh central governme...